Patanjali Foods Ltd. witnessed a sharp 5% fall in its share price on Monday after the company’s Q2 results failed to impress the Street, even though the FMCG major reported robust growth across key parameters. The stock reaction came as a surprise, considering the firm’s standalone net profit surged 67.2% year-on-year, marking its best-ever quarterly performance.
According to the company’s financial report, revenue from operations rose 20.9% compared to the same quarter last year, driven by higher sales in edible oils and packaged food segments. The Baba Ramdev-led company said profitability metrics improved substantially, supported by better operating efficiency and cost control measures.
Despite the impressive numbers, analysts noted that the results fell short of market expectations, as investors were anticipating even stronger volume growth and margin expansion. This mismatch between high expectations and reported figures triggered short-term profit-taking in the counter.
Brokerage firm ICICI Securities retained an ‘Add’ rating on Patanjali Foods, setting a target price of ₹650 per share, indicating potential upside from current levels. The brokerage highlighted the company’s strong fundamentals, expanding distribution network, and growing presence in the fast-moving consumer goods (FMCG) space as key positives.
Experts believe that the recent correction may offer a buying opportunity for long-term investors, given the company’s consistent revenue growth and profitability trajectory. However, they caution that near-term volatility could persist as the market recalibrates its expectations.
Patanjali Foods continues to be one of the most watched stocks in India’s FMCG sector — blending traditional wellness appeal with modern business growth ambitions.
